At the beginning of 2004, Quick Service Companys accounting records had the following general ledger accounts and
Question:
At the beginning of 2004, Quick Service Company’s accounting records had the following general ledger accounts and balances.
Quick completed the following transactions during 2004:
1. Purchased additional land for \($12,000\) cash.
2. Acquired \($20,000\) cash from the issue of common stock.
3. Received \($65,000\) cash for providing services to customers.
4. Paid cash operating expenses of \($42,000\).
5. Paid \($20,000\) cash on notes payable.
6. Paid a \($3,000\) cash dividend to the stockholders.
7. Determined the market value of the land to be \($72,000\) at the end of the year.
Required:
a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table.
b. Determine the amount of net income for the 2004 period.
c. What is the amount of total assets at the end of 2004? What is the amount of stockholders’ equity at the end of 2004?
Step by Step Answer:
Survey Of Accounting
ISBN: 9780077503956
1st Edition
Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay